Preliminary year-to-September 2003 figures from German edition of the HotelBenchmark Survey by Deloitte show that revPAR across Germany fell by 6.6 percent to €46 compared to the same period in 2002, driven predominately by declining average room rates.

Of the 42 markets tracked across the country, only three have managed to post positive revPAR growth during the first nine months of the year and a number of key cities continue to report double-digit declines.

Markets fortunate enough to see some growth in revPAR include, Rostock (15 percent), Leipzig (1.2 percent) and Niedersachsen (1 percent). Rostock hoteliers have continued to enjoy increased demand stemming from the IGA Exhibition (international garden and horticulture exhibition).

The event, held from 25 April - 12 October 2003 is estimated to have attracted 2.6 million visitors. Consequently the city is currently enjoying the highest occupancy levels of any city tracked in Germany with year-to-date occupancy resting at 74 percent, an 11 percent increase on the same period in 2002.

Although Leipzig has seen revPAR increase by 1.2 percent to €28 during the first nine months of 2003, this does not detract from the fact that after Kassel, the city currently has the lowest revPAR of any market in Germany.

Cities such as Berlin, Dusseldorf, Essen, Heidelberg, Kassel and Koln however have not been so lucky. Year-to-date figures reveal that they have all experienced revPAR declines in excess of 12 percent compared to the same period last year. Dusseldorf and Kassel have been the worst affected, recording declines of 23 percent and 20 percent respectively.

Despite continued tough trading conditions the only consolation for German hoteliers is they are not alone. Both the UK and the Netherlands have year-to-date posted greater revPAR declines than Germany (13 percent) and markets such as Italy and Belgium are not lagging far behind (6 percent).